Break and bounce call.

Below are 60 day charts of the DIA and SPY. The descending wedges appear broken. Before the final target is hit in area 3, I would expect an intermediary resistance level (area 1) to bounce us back to a retrace of support at area 2. There are two alternatives for area 2 on the SPY.

This scenario would do the most damage to the average trader. The breakout of the wedge and go long play would be shaken out by the retrace. Those currently short and holding will have reinforcement of their play until area two sharply bounces prices to area 3.

A bull trap that eventually turns bullish, what a sham....

Note these are purely speculative TA calls, they will not effect my trade technique in the slightest. This is just an opinion based on TA perception. I am currently 100% in cash, and will remain that way until the market directs me otherwise. See you at the bell.